Down payment with RSUs?

Salesforce
Hessian()

Salesforce

BIO
I am blind to something and you are too.
Hessian()more
Dec 9, 2018 13 Comments

Wondering if it's a good idea to get a starter home by selling half my RSUs?

What's the lowest downpayment percentage I could manage?

I'm single, spent all of my 20s in grad school and haven't been working for very long, so net worth not very high. For some reason I feel like owning my home, however.

Looking at Berkeley/ SF/ Oakland hills. 1br for now should be ok, can upgrade later. TC around 320k. Good credit.

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TOP 13 Comments
  • Amazon / Eng IAmJob
    Its always a good idea to diversify. Sounds like too much of your net worth is in Salesforce.

    On the other hand, a 1 bed isn't the greatest real estate option as you are competing with apartment complexes. Hard to resell, hard to cash flow as a rental, high HOA.

    Who knows you might meet a nice girl/guy in a few years and want something bigger. I personally would take those rsus and invest elsewhere.
    Dec 9, 2018 2
    • MongoDB XwAi56
      Is buying real estate near a tech hub actually diversifying?
      Dec 9, 2018
    • Medallia
      skidz

      Medallia

      BIO
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      skidzmore
      Yes, people will need a place to live even if tech companies do poorly.
      Dec 9, 2018
  • eBay eBayz
    Try to get a two bedroom, with a semi decent school around it. That way you can rent it out after you leave. You can also find a room mate to help cut down on bill cost and your mortgage.

    However it is hard to find a place that is going to break even with your mortgage via rent income. You should put 20% down to get a better rate.

    It’s also a very bad time to buy, prices are very high and we are due for a reset.
    Dec 9, 2018 0
  • New Wq24
    Market will crash soon or at least dip. You’re better off buying a property in Austin/Dallas/Pittsburgh etc, rent it for higher, get the mortgage pay off started and when you have more saved, you’ll have an increased value asset and may be even buy a second home
    Dec 9, 2018 1
    • Salesforce
      Hessian()

      Salesforce

      BIO
      I am blind to something and you are too.
      Hessian()more
      OP
      How do taxes work? Problem is I don't like those cities! :( How about Portland?
      Dec 9, 2018
  • Salesforce willforce
    Try to go for 2 bed, with parking. You will need it in future. Or go for 1 bed in Berkeley. Easy to let to students when you upgrade.
    Dec 9, 2018 3
    • Salesforce
      Hessian()

      Salesforce

      BIO
      I am blind to something and you are too.
      Hessian()more
      OP
      That's what I was thinking. But some people are like 1br won't resell.
      Dec 9, 2018
    • Salesforce
      Hessian()

      Salesforce

      BIO
      I am blind to something and you are too.
      Hessian()more
      OP
      I don't want to live in the South Bay or in suburbia when single but I still want my own home even if by 2020 😇
      Dec 9, 2018
    • Salesforce willforce
      1BR shouldn't be hard to resell. They are best investment opportunities.
      Dec 11, 2018
  • This comment was deleted by original commenter.

    • Salesforce
      Hessian()

      Salesforce

      BIO
      I am blind to something and you are too.
      Hessian()more
      OP
      What's a rental property
      Dec 9, 2018
  • Pharmacyclics / Other
    Sairaat

    Pharmacyclics Other

    PRE
    Google, Bank of America
    BIO
    Analytics professional with background in marketing analytics, fin-tech, e-commerce & healthcare.
    Sairaatmore
    You can do it but don't liquidate all of your savings. You can also count 401k savings to apply for mortgage. I would buy something in Berkeley. Remember you will have to pay taxes later on the RSUs you will be using.
    Dec 14, 2018 0
  • eBay eBayz
    1bd will resell but they are harder to sell, less people want them. 2bd is much more sought after, while also more expensive.
    Dec 10, 2018 0